Execution Algorithms
We develop smart order execution algorithms for token issuers, early investors, and crypto asset managers.
We offer a variety of generic and proprietary execution algorithms. Our execution algorithms are employed by professional asset managers and can be customized to meet your specific needs.
Our execution bot works with multiple major crypto exchanges and can be adapted to work with any exchange. The bot runs on our servers, and we retain complete control over its operation. We require our clients to provide us with their trading account API keys and trading permissions, while withdrawal permissions will be disabled. This ensures the protection of our clients and their complete control over account funds.
When to use execution algorithms?
The goal of an execution algorithm is to acquire the best price for an asset, especially for larger orders. We aim to minimize market impact when executing such orders. We achieve this with various execution algorithms. Larger orders can be dispersed among multiple exchanges to access greater market liquidity.
TWAP
The Time-Weighted Average Price (TWAP) strategy breaks up large orders and releases dynamically determined smaller chunks of the order to the market using evenly divided time slots between start and end time.
The aim is to execute the order close to the average price between the start and end times, thereby minimizing market impact.
Medium price risk: securing an approximately average price over time.
Low execution risk: extend execution in a predictable manner.
Higher market impact: market impact depends on the timeframe and the total execution amount. Executing large amounts over a short time frame yields greater market impact.
VWAP
The Volume Weighted Average Price (VWAP) is a ratio generally used by institutional investors and mutual funds to buy and sell so as not to disturb the market prices with large orders. It is the average price of an asset, weighted against its trading volume.
The trade is good if the buy price is lower than the VWAP. The opposite is true if the price is higher than the VWAP.
The aim is to execute the order close to the Volume-Weighted Average Price (VWAP).
Low price risk: guarantees a volume-weighted average price (VWAP).
Higher execution risk: longer execution times in an up-trending or down-trending market.
Low market impact.
PVOL
The Percent of Volume (PVOL) algorithm attempts to minimize market impact by participating in a constant, user-defined percentage of trading volume over a time interval. The PVOL algorithm intends to set an upper bound on the trade’s market impact by maintaining a certain level of market participation. Selecting a higher percentage of volume will produce greater market impact but decrease price risk. Targeting a lower percentage of volume will delay execution and increase price risk.
According to the defined volume participation ratio and the volume traded in the targeted markets, this algorithm continues sending partial orders until the trade order is fully filled.
Medium price risk: securing an approximately average price over time.
High execution risk: execution depends on the total execution amount and user-defined volume percentage.
Low market impact: market impact is controlled by the user.